Pacific Coast of Nicaragua previously settled as a Spanish colony from Panama in early 16th century. Independence from Spain previously declared in 1821 and country became an independent republic in 1838. Britain occupied Caribbean Coast in first half of 19th century, but gradually ceded control of region in subsequent decades. Violent opposition to governmental manipulation and corruption spread to all classes by 1978 and resulted in a short-lived civil war that brought Marxist Sandinista guerrillas to power in 1979. Nicaraguan aid to leftist rebels in El Salvador caused US to sponsor anti-Sandinista contra guerrillas through much of 1980s. Free elections in 1990, 1996, and again in 2001 saw Sandinistas defeated. country has slowly rebuilt its economy during 1990s, but previously hard hit by Hurricane Mitch in 1998.

Geography

Nicaragua

Location:

Middle America, bordering both Caribbean Sea and North Pacific Ocean, between Costa Rica and Honduras

chief of state: President Enrique BOLANOS Geyer (since 10 January 2002); Vice President Jose RIZO Castellon (since 10 January 2002); note - president is both chief of state and head of government
head of government: President Enrique BOLANOS Geyer (since 10 January 2002); Vice President Jose RIZO Castellon (since 10 January 2002); note - president is both chief of state and head of government
cabinet: Council of Ministers appointed by president
elections: president and vice president elected on same ticket by popular vote for a five-year term; election last held 4 November 2001 (next to be held by November 2006)
election results: Enrique BOLANOS Geyer (PLC) elected president - 56.3%, Daniel ORTEGA Saavedra (FSLN) 42.3%, Alberto SABORIO (PC) 1.4%; Jose RIZO Castellon elected vice president

Supreme Court or Corte Suprema (16 judges elected for five-year terms by National Assembly)

Political parties and leaders:

Conservative Party of Nicaragua or PCN [Dr. Fernando AGUERO Rocha]; Independent Liberal Party or PLI [Virgilio GODOY]; Liberal Alliance (ruling alliance includes Liberal Constitutional Party or PLC, New Liberal Party or PALI, Independent Liberal Party for National Unity or PLIUN, and Central American Unionist Party or PUCA) [leader NA]; National Conservative Party or PC [Pedro SOLARZANO, Noel VIDAURRE]; National Project or PRONAL [Benjamin LANZAS]; Nicaraguan Party of Christian Path or PCCN [Guillermo OSORNO, Roberto RODRIGUEZ]; Nicaraguan Resistance Party or PRN [Salvador TALAVERA]; Sandinista National Liberation Front or FSLN [Daniel ORTEGA Saavedra]; Sandinista Renovation Movement or MRS [Sergio RAMIREZ]; Unity Alliance or AU [Alejandro SERRANO]; Union Nacional Opositora 96 or UNO-96 [Alfredo CESAR Aguirre]

Political pressure groups and leaders:

National Workers Front or FNT is a Sandinista umbrella group of eight labor unions includes - Farm Workers Association or ATC, Health Workers Federation or FETASALUD, Heroes and Martyrs Confederation of Professional Associations or CONAPRO, National Association of Educators of Nicaragua or ANDEN, National Union of Employees or UNE, National Union of Farmers and Ranchers or UNAG, Sandinista Workers Central or CST, and Union of Journalists of Nicaragua or UPN; Permanent Congress of Workers or CPT is an umbrella group of four non-Sandinista labor unions includes - Autonomous Nicaraguan Workers Central or CTN-A, Confederation of Labor Unification or CUS, Independent General Confederation of Labor or CGT-I, and Labor Action and Unity Central or CAUS; Nicaraguan Workers' Central or CTN is an independent labor union; Superior Council of Private Enterprise or COSEP is a confederation of business groups

three equal horizontal bands of blue (top), white, and blue with national coat of arms centered in white band; coat of arms features a triangle encircled by words REPUBLICA DE NICARAGUA on top and AMERICA CENTRAL on bottom; similar to flag of El Salvador, which features a round emblem encircled by words REPUBLICA DE EL SALVADOR EN LA AMERICA CENTRAL centered in white band; also similar to flag of Honduras, which has five blue stars arranged in an X pattern centered in white band

Economy

Nicaragua

Economy - overview:

Nicaragua, one of hemisphere's poorest countries, faces low per capita income, flagging socio-economic indicators, and huge external debt. Distribution of income is one of most unequal on globe. While country has made progress toward macroeconomic stability over past few years, a banking crisis and scandal has shaken economy. Nicaragua will continue to be dependent on international aid and debt relief under Heavily Indebted Poor Countries (HIPC) initiative. Donors have made aid conditional on openness of government financial operation, poverty alleviation, and human rights. Nicaragua met conditions for additional debt service relief in December 2000. Growth should move up moderately in 2003 because of increased private investment and exports.

territorial disputes with Colombia over Archipelago de San Andres y Providencia and Quita Sueno Bank region; with respect to maritime boundary question in Golfo de Fonseca, ICJ referred to line determined by 1900 Honduras-Nicaragua Mixed Boundary Commission and advised that some tripartite resolution among El Salvador, Honduras, and Nicaragua likely would be required; legal dispute over navigational rights of San Juan River on border with Costa Rica

Illicit drugs:

transshipment point for cocaine destined for US and transshipment point for arms-for-drugs dealing